Exploring Algorithmic Trading: Technology-Driven Market Transformation
摘要
Algorithmic trading or algo trading involves the utilization of computer programs to conduct trades, without intervention of humans. It’s for increasing the efficiency, reducing the cost of transaction, It has grown from early systems that just automating orders to today’s high-frequency trading (HFT) and predictive models that powered by the machine learning. Even though algo trading has optimized the market efficiency and liquidity it has also developed issues such as high volatility, systemic risks and flash crashes. Due to the development of machine learning and technology in general, trading strategies are enhancing the ability to adapt; as such, algorithmic trading is now the primary mode of financial trading.